Malaysia Visa Application
2 Years Business Visa for Investors and their Families
Under this scheme, investors can apply for a 2 year business visa for themselves and their families by incorporating a Labuan International Company. Such companies are 100% foreign owned and have minimal paid-up capital requirements. Incorporating such a company does not require investors to apply for a WRT License.
Corporate tax on net profits in a Labuan International Company is at 3% or RM 20,000 whichever is lower. Visa endorsement takes place in approximately 60 days and investors can apply for 3 to 4 poisitions of foreigners with work permit under the company. A registered office is also not required.
Non-resident Company with 100% Private Holding (Sdn Bhd)
This arrangement is ideal for foreign investors who wish to manage their own business in Malaysia. Setting up a Private Limited Company (Sdn Bhd) allows business owners to obtain a 2-year Malaysian Work Permit (DP10) without any technicalities or high costs.
To apply for a 2-year work permit, a minimum paid up capital of RM1 million is required for the company. In addition, a WRT License is also required. The lead time from the incorporation of the company to the final endorsement on the passport typically ranges from 6 to 9 months. This provides investors with adequate time to meet the minimum paid up capital. However, there are certain businesses that foreigners are not allowed to conduct.
Joint Venture with a Local Malaysian
Foreigners can also opt to incorporate an Sdn Bhd Company with a local Malaysian. Under this arrangement, the minimum paid capital requirement is for RM 350,000. A WRT License is not required if the local Malaysian partner owns more than 50% of the shares of the company.
Depending on the nature of the business, the Malaysian authorities may allow a 2-year work permit for the newly incorporated company. The time frame involved in examining the documents and the final endorsement on the passport is 2-3 months.
Under this arrangement, employers and business owners can apply for a 2-year work permit for as many foreigners as they wish to hire/employ for their organization. To qualify for immigration assistance, the employee must be on a normal contract with the company and the minimum monthly salary should be RM 5000.
The government imposes certain limitations on the qualification for a work visa/employment pass. For individuals applying for a Skill/Specialist/ Technical Position, a minimum Bachelor Degree is required. Furthermore, the endorsement process takes 1 to 2 months. Upon successful evaluation, the employee and their family are both awarded a 2-year work permit.
Representative or Regional Office
For companies operating for 2 years or more, Malaysia offers an opportunity to set up a Representative Office in the country. Such offices are prohibited from conducting any commercial transactions with Malaysian companies and are formed for the purpose of acting as coordinating centers, surveys and findings and exploring business opportunities. Setting up a regional office in Malaysia entitles investors to a 3-year work permit, along with their families. Processing takes 2 to 3 months.
Work Permit Criteria in Malaysia
(1) For joint venture companies, a minimum of 30% foreign shareholding is required.
(2) According to Guidelines on Foreign Participation in the Distributive Trade Services Malaysia under the purview of the Ministry of Domestic Trade, Co-operatives and Consumerism, foreign involvement is restricted in sectors as per Annex E. Therefore applications for any long-term pass (more than 3 months) including Employment Pass for companies in these sectors is NOT ALLOWED. You may refer to http://www.kpdnkk.gov.my for more information.
(3) The Information, Technology & Communications (ICT) sector is only allowed to apply for Professional Visit Pass (PVP) via ESD Online. Please note that you must comply with the ESD registration first before you can proceed to apply for any type(s) of EP.
(4) If your organisation is applying for Professional Visit Pass (PVP) only, the company is still required to comply with the paid up capital requirement for company registration.
All work permits offered by Malaysia have multiple entries, are renewable and extend to the spouse and children (aged less than 21). Each work permit has its own merits and drawbacks and is suited for different investors and their requirements. To learn more on which work permit suits you best, feel free to contact us!